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News Release

Auckland

Ring Route to redefine Auckland's industrial market

With the completion of the Western Ring Route, Auckland will not only see the completion of its long planned motorway network, but it will also open up linkages which will increase land values and rents for industrial owners in West Auckland.


 

 

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Rosebank and Henderson in particular will see their levels of connectivity to the rest of Auckland increase significantly. In the same way that the Harbour Bridge changed the face of Auckland 70 years ago, the Western Ring Route will shift the centre of gravity of Auckland’s industrial market from the South Auckland suburbs of Penrose and Mt Wellington westwards to Rosebank and Henderson. 

JLL’s latest research whitepaper carried out an in depth study into the Western Ring Route and its effect on West Auckland’s industrial property market. As the Western Ring Route is completed, JLL anticipates a re-rating of the area which will largely impact on investment pricing as greater connectivity is likely to mean reduced vacancy risk, longer term stable occupier demand and sustained future investor interest.

Where previously West Auckland’s industrial precinct was a peripheral anomaly, the Western Ring Route will centralise the western industrial zones, rewriting the map and trade and logistics routes. 

Luke McGill, West Auckland industrial sales and leasing agent and co-author of the whitepaper says, “A major draw-card to the centralisation of West Auckland’s Industrial areas with the upgraded infrastructure is the ability to interact and trade directly with the CBD as well as north and south. For example, established corporates with a manufacturing arm in the west can connect to retail centres in the CBD, city fringe and north – while offering a financially expedient co-ordination of wholesale or manufacture related trade with the southern corridor.”

The new infrastructure will dramatically reduce travel times between commercial/industrial hubs and allow West Auckland to be located within a workable distance from the predominant trade and logistics activity of industrial operation.

​McGill says, “The effect of centralisation and reduction of drive-times will make trade and logistics more desirable from a West Auckland location. With the rise in demand, there will be inevitable rise in land and building prices, coupled with extensive brownfield upgrades and the development of existing warehousing.”

The centralisation of West Auckland industrial zones will appeal to all industries who rely on regular delivery and trade flow Auckland-wide. Upon completion, manufactures and distributors can now conveniently route their trading pattern through the CBD and South Auckland/airport zones. 

McGill says, “At this point in time there is little to distinguish western industrial from its southern industrial neighbours. Most western industrial operators are still commuting and trading with the south. However, it is our contention that with a land shortage in South Auckland; the opening of the new motorway infrastructure and; vast sprawls of future urban zoning around Hobsonville Point, Westgate and Kumeu – West Auckland is seeing the catalyst of change.”

Justin Kean, Head of Research at JLL and co-author of the whitepaper says, “There will be a rerating of market values, particularly in Rosebank/Avondale however we would also expect to see an uplift in Lincoln Road/Henderson. We expect rents to rise with Rosebank being in line with Auckland’s other prime industrial suburbs. We can also expect yields to firm as the attractiveness of the location improves for a broad range of occupiers.”

The Western Ring Route will open in early 2017 and upon completion is forecast to drop at least 20% of the traffic regroup along the western corridor though the Western Ring Route. The ring route will not only be used to access the north and west, but also to bypass State Highway 1 during congestion times.